Senate Republicans Considering Higher Taxes on Rich to Pay for ‘No Tax on Tips’

The proposal is one among many being considered by the Republican conference, motivated by the strict rules of the budget reconciliation process.

Sen. Mike Rounds (R-S.D.) speaks in Washington on Jan. 27, 2021. Leigh Vogel/AFP via Getty Images

WASHINGTON—Members of the Senate Republican Conference have told The Epoch Times that they are considering a proposal to increase taxes on wealthy individuals to deliver on one of President Donald Trump’s popular campaign promises: “No tax on tips.”

During his 2024 presidential campaign, Trump repeated the phrase multiple times to win the support of service industry workers, particularly in battleground states such as Nevada, whose income, apart from their regular salary, often includes tips from customers.